Haryana

Ambala

CC/392/2018

Smt Raj Bala - Complainant(s)

Versus

BM SBI - Opp.Party(s)

Rakesh Kumar Singh

02 Apr 2021

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, AMBALA.

 

                                                                       Complaint case No.        :  392 of 2018

                                                                        Date of Institution           :   04.12.2018

                                                                        Date of decision              :   02.04.2021

 

1. Smt. Raj Bala W/o Late Shri Amar Singh, aged about 48 years.
2. Parveen Kumar s/o Late Shri Amar Singh, aged about 31 years.
3. Ritu Rani D/o Late Shri Amar Singh, aged about 26 years.

All residents of H.No.66, Punjabi Bagh Ram Bagh Road, Ambala Cantt.

……. Complainants.

 

1. Branch Manager, State Bank of India, Brahma Kumari Chowk, Mahesh Nagar, Ambala Cantt.
2. Chairman, State Bank of India, State Bank Bhawan, 14^th Floor, Madame Cama Road, Nariman Point, Mumbai (Maharashtra).
3. Managing Director/Chairman, SBI General Insurance Company Ltd., Natraj, 101, Junction of Western Highway & Andheri-Kurla Road, Andheri East Mumbai-400069.                                                               

           ….…. Opposite Parties.

 

Before:        Ms. Neena Sandhu,  President.

                   Ms. Ruby Sharma, Member,

Sh. Vinod Kumar Sharma, Member.          

                            

Present:       Shri R.K.Singh, Advocate, counsel for the complainant.

Shri U.S.Chauhan, Advocate, counsel for the OPs No.1 & 2.

Shri R.K.Vig, Advocate, counsel for the OP No.3.

 

Order:        Smt. Neena Sandhu, President

Complainant has filed this complaint under Section 12 of the Consumer Protection Act, 1986 (hereinafter referred to as ‘the Act’) against the Opposite Parties (hereinafter referred to as ‘OPs’) praying for issuance of following directions to them:-

1. To pay insured amount of Rs.4,00,000/- under personal accidental policy alongwith interest till its realization.   
2. To pay Rs.50,000/- as compensation for the mental agony and physical harassment suffered by him.
3. To pay Rs.25,000/- as cost of litigation.

 

Brief facts of the case are that the complainants are the legal heirs of Shri Amar Singh (since deceased) s/o late Shri Sonu Ram, who died in a road side accident on 05.10.2015. During his life time Late Shri Amar Singh was having a saving account bearing No.20183747442 with the OP No.1, controlled and administered by the OP No.2. On 29.10.2013, during his life time Shri Amar Singh went to the Branch to deposit a sum of Rs.500/- in the above said account, the bank official told him that there is a scheme of SBI General Insurance Company Limited i.e. OP No.3, namely-Personal Accident Policy and if a person pays Rs.200/- per year, in case of accidental death, then his legal heirs will get Rs.4,00,000/- as compensation under the said scheme. It was further told to him that the bank will debit the premium automatically every year from the account of the account holder. Late Shri Amar Singh gave his consent to debit annual premium of Rs.200/- from his account and the official of OP No.1 immediately debited Rs.200/- from his account and transferred the same to the OP No.3. OPs were duty bound to give the insurance certificate to him, but they did not provide the same. The official of the Bank assured him that insurance premium will be debited automatically every year and he need not to come to the bank every year and in case of accidental death, his LRs will get a compensation of Rs.4,00,000/- under this policy. Unfortunately, on 05.10.2015 Amar Singh died in a road side accident. Late Shri Amar Singh was also insured under the PSMB Yojna launched by the Govt of India by paying a sum of Rs.12/- on 30.05.2015. After the death of Amar Singh, complainants being his legal heirs wrote several letters and personally visited the office of OP No.1 and also served a legal notice dated 26.04.2017, upon the OPs No.1 and 2. Thereafter the complainant being LRs got the compensation of Rs.2,00,000/- on 31.08.2017 under the PSMB Yojana. Complainants were not aware of the SBI General Insurance Accidental Policy, but the bank was very much aware of this fact that complainants were entitled for compensation of Rs.4,00,000/-, but they did not inform them about the same. Complainant received a letter dated 15.002.2018, from the SBI General Insurance vide which it issued a certificate of insurance after receiving the premium amount of Rs.200/- from the OPs No.1 and 2, which were fully authorized to debit the premium amount annually, automatically from the account of late Shri Amar Singh. The Bank officials deducted Rs.200/- as premium on 03.02.2017 and 07.02.2018 respectively, after the death of Shri Amar Singh, which shows that OP Bank was fully authorized to deduct/debit the premium from the account of the late Shri Amar Singh automatically. Complainants requested the OPs to pay the claim amount of Rs.4,00,000/- and also served a legal notice dated 05.0.2018, upon the OPs, but of no avail. Hence, the present complaint.     

2.                 Upon notice, OPs No.1 and 2 appeared through counsel and filed written version, raising preliminary objections regarding suppression of true and material facts, no cause of action, no jurisdiction, no locus standi, maintainability etc. On merits, it is stated that the answering OPs are not aware about the LRs of late Shri Amar Singh and are also not aware about the death of late Shri Amar Singh in an accident till the time when the complainant has filed first claim under PMSB Yojana with the answering OPs. It was the duty of the complainants to inform the Bank regarding the death of the account holder and to get closed the account, but nothing was done by them. On one hand the complainants are stating that they were not aware of this fact that late Shri Amar Singh was having any policy of SBI General Insurance and on the other hand they are narrating a story that the answering OP No.3 offered late Shri Amar Singh a scheme of SBI General Insurance Company policy. As such the entire version of the complainants is concocted, just only to grab money from the answering OPs. The complainants for the first time came to know about the insurance policy when they received a certificate of insurance which was valid from 07.02.2018 for one year. After receiving the said certificate, complainants came to know from the passbook that Rs.200/- was deducted on 07.02.2018 as premium. Since the account holder had already died, therefore the insurance contract had become void for want of competent party. The premium of Rs.200/- so deducted on 03.02.2017 and 07.02.2018 had already been credited into the account of late Shri Amar Singh on 03.10.2018 by the OP No.3. As such the insurance certificate so issued in the name of late Shri Amar Singh became infrutuous. As a matter of fact the premium amount got deducted from the account of late Shri Amar Singh due to technical reasons, without any manual intervention, whereas there were no instructions from the customer to get the policy renewed on yearly basis as alleged. The policy issued in the name of late Shri Amar Singh was only valid for one year i.e. from 29.10.2013 to 28.10.2014, but as per the case of the complainants, death of Amar Singh occurred on 05.10.2015, as such deceased was not covered under the policy during the said period as premium was not paid. The answering OPs had never assured late Shri Amar Singh that bank will debit the premium amount automatically from his account. The LRs of deceased had already received a compensation of Rs.2,00,000/- on 31.08.2017 under PMSB Yojana. Since, late Shri Amar Singh was not insured at the relevant time as he failed to pay the requisite premium for the said insurance policy, therefore complainants being his legal heirs are not entitled to get any benefit under the policy. Rest of the allegations were denied for want of knowledge and prayer has been made for dismissal of the present complaint filed by the complainants against OPs No.1 and 2, with heavy costs.        

                   Upon notice, 3 appeared through counsel and filed written version, raising preliminary objections regarding suppression of true and material facts etc. On merits, it is stated that complainants never informed the answering OP about the death of late Shri Amar Singh. At the time of death of Shri Amar Singh, he was not insured with the answering OP, thus no claim is payable to the complainants. The complainants have levelled allegations against OPs No.1 and 2 regarding non deduction/debiting of Rs.200/- as premium. No specific allegation has been levelled against it, therefore complaint filed against it may be dismissed with heavy costs.  

3.                To prove the version of the complainants, the ld. counsel for the complainants tendered affidavit of Smt. Raj Bala wife of late Shri Amar Singh, resident of House No.66, Punjabi Bagh Ram Road, Ambala Cantt. as Annexure CA along with documents as Annexure C-1 to C-17 and closed the evidence on behalf of complainants. On the other hand, learned counsel for OPs No.1 and 2 tendered affidavit of Ms. Sunanda Passi, Branch Manager, State Bank of India, Branch Mahesh Nagar, Ambala City, District Ambala (Haryana) as Annexure OP 1/A and closed the evidence on behalf of the OPs No.1 and 2. On the other hand, learned counsel for the OP No.3 tendered affidavit of Jitendra Dhabhai, Authorized Signatory, SBI General Insurance Company Limited, III Floor, 46 Pusa Road, Karol Bagh, New Delhi as Annexure OP3/A along with documents Annexure OP3/1 and closed the evidence on behalf of OP No.3.

4.                 We have heard the learned counsel for parties and carefully gone through the case file.

5.                The Ld. counsel for the complainants argued that Shri Amar Singh, life assured (hereinafter referred to as LA), husband of complainant No.1 and father of complainant No.2 and 3, during his life time was having a saving account with the OP bank i.e. OPs No.1 and 2. On 29.10.2013, he purchased the personal accidental policy in question from the OP No.3, having a sum assured of Rs.4,00,000/-. For renewal of the said policy, he instructed the OP bank to deduct Rs.200/- per year as premium by way of auto debit. The OP Bank debited Rs.200/- from the account of LA on 29.10.2013, and transferred the same to the OP No.3. He was also insured under the Prime Minister Bima Yojana (hereinafter referred to as PMBY) launched by the Govt. of India by paying a sum of Rs.12/- as premium on 30.05.2015. Unfortunately, Shri Amar Singh died on 05.10.2015, in a road accident and the complainants being his Legal heirs of the LA got compensation of Rs.2,00,000/- under the PMBY. From the statement of account Annexure C-4, it is evident that OP Bank deducted Rs.200/- as premium on 03.02.2017 and 07.02.2018, which shows that the OP Bank was to auto debit the premium amount annually, for the renewal of the insurance policy in question. However, in the year 2015, the OP Bank had not deducted premium, for the reasons best known to them. Had the OP Bank deducted the premium for the year 2015, then the complainants being the LRs were entitled to get Rs.4,00,000/- from the OP No.3 on account of accidental death claim. By not debiting the premium amount and transferring the premium amount to OP No.3, the OP Bank has committed deficiency in service. Therefore, complainants are entitled to get the amount of Rs.4,00,000/- along with interest. The Complainants are also entitled for the compensation for mental agony and physical harassment suffered by them along with litigation expenses.

                   The Ld. counsel for the OPs No.1 and 2 has submitted that there was no instruction from the LA to the OP Bank to auto deduct/debit the premium amount from his saving account. Further there were no instructions from the LA regarding deduction of premium for the said policy from his account for the year 2015. Since, Shri Amar Singh died on 05.10.2015, therefore the insurance contract became void for want of competent party. As a matter of fact, the premium on 03.02.2017 and 07.02.2018, was got deducted due to technical flaws and same has already had been credited back in the account of LA, therefore they cannot be said to be deficient in providing services to the complainants.

                   The Ld. counsel for the OP No.3 argued that at the time of death of Shri Amar Singh, he was not insured with the OP No.3, therefore it is not liable to pay the accidental death claim. Complainants have levelled allegations against the OPs No.1 and 2 that inspite of mandate given by the LA for auto debit, the OPs No.1 and 2 had not deducted the premium for the year 2015, however they have not produced on record any documentary proof in this regard. No specific allegation has been levelled against it by the complainants, therefore complaint filed by the complainants against it is not maintainable and same may kindly be dismissed with costs.

                   Complainants have alleged that Shri Amar Singh (LA) had instructed the OP Bank for auto debit of the premium for the policy in question, from his saving account, but it did not debit the premium amount for the year 2015. Whereas, the stand of the Bank is that there was no such instruction from the LA. However, the complainants have not produced any document to establish that the LA had instructed the OP Bank for auto debit of premium amount. In the absence of any documentary proof, we thus hold that complainants have failed to prove their case. Be that as it may, the complaint filed by the complainants is devoid of merits, consequently we dismiss the same, without any order as to costs. Certified copies of this order be supplied to the parties concerned, forthwith, free of cost as permissible under Rules. File be indexed and consigned to the Record Room.

Announced on: 02.04.2021.

 

(Vinod Kumar Sharma)                      (Ruby Sharma)         (Neena Sandhu)                    Member                                         Member                     President